Every Monday I like to look at ASIC's short position report to find out which shares are being targeted by short sellers.
This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.
With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:
- Webjet Limited (ASX: WEB) remains the most shorted share on the ASX with short interest increasing to a sizeable 14.5%. Short sellers continue to increase their positions following its full year results. This may be due to concerns over its valuation in comparison to its medium term outlook.
- Speedcast International Ltd (ASX: SDA) continues to have short interest of 11.7%. Short sellers have done well with this one, but have been unable to closer their positions because the communications satellite technology provider's shares have been suspended for most of 2020. Speedcast is busy trying to recapitalise after declaring itself bankrupt. It recently made progress, announcing a US$395 million equity commitment to complete its chapter 11 recapitalisation.
- Myer Holdings Ltd (ASX: MYR) has seen its short interest reduce week on week once again to 11.5%. Short sellers have been targeting the department store operator on the belief that the pandemic will ruin its turnaround plans.
- Orocobre Limited (ASX: ORE) has seen its short interest rise slightly week on week at 9%. Last week the lithium miner posted a US$67.1 million loss after tax in FY 2020. This was driven by a sharp decline in lithium prices. Orocobre also launched a $156 million equity raising.
- InvoCare Limited (ASX: IVC) has short interest of 8.9%, which is up materially week on week. Short interest has been building since the release of the funerals company's half year results. Those results revealed a sharp decline in profits because of social distancing restrictions.
- Inghams Group Ltd (ASX: ING) has 8.6% of its shares held short, which is down sharply week on week. Short sellers may be closing positions on the belief that the poultry producer is now over the worst of its problems following its full year result. Inghams reported a 68.2% drop in profits for FY 2020.
- Nearmap Ltd (ASX: NEA) is back in the top ten with short interest of 7.5%. Short sellers may be regretting this one. The aerial imagery technology and location data company's shares have been strong performers since the release of its full year results. So much so, last week they hit a 52-week high.
- Corporate Travel Management Ltd (ASX: CTD) has short interest of 7.7%, which is up slightly week on week. Once again, short sellers may regret this one. The travel company's shares are up 79% in August.
- CLINUVEL Pharmaceuticals Limited (ASX: CUV) has seen its short interest reduce slightly to 7.7%. Last week the biopharmaceutical company's shares sank lower following a disappointing full year result.
- Bank of Queensland Limited (ASX: BOQ) has seen its short interest rise slightly to 7.5%. Some short sellers appear to believe the worst is not over yet for the regional bank.
